the next hour. full -- first full week of the new year. >> i will not ask you what you did over the weekend. i live tweeted with adam johnson. >> yes. how long -- how weird is it it e 54 degrees in new york city -- city? lower for a high today. >> i will introduce a man who could have built his business in california where the weather is always great but chose to freeze with us. thank you for being with us. founder of one of the best- performing tech internet companies out there at a time when so many companies like you are not making revenue. it is all you do. the first real week of the year, what is your message to the team? are in growth mode

building a company and we have a lot to do in 2014. 2013 was great. there are still a lot of businesses out there that need things for everything they do every day. that is the theme of the week. we have one company doing that. t-mobile will buy some spectrum. 700 megahertz spectrum licenses. everybody wants those. $2.4 billion shows how important it is to have the space. dead a whilet for ago. jpmorgan, they will pay a $2 .illion fine on charges >> jpmorgan made off, people inside made off. why they are picking on jpmorgan -- 20 billion?

two mortgages to the london wales story. >> you would not agree to pay it a must there is something going on. today's the first day of the real trading day of the year. stock futures are higher and lower in china. five-month low. appointing manufacturing data is raising old fears of a slowdown in china once again. sells skiing and broke her pelvis and canceled everything for the next three weeks. i am not sure how that happens. downhill skiing, i am with you. think about the market this year and what people have are you going to repeat and s&p 30% return on the year. the mortgages did so well last year, many took money out of mortgages.

so what will happen this year? >> after a year like that you do not repeat that. the guys as strategic research, he went back and since 1950, they look at all the years when there 25% and you typically get a return on average the following year of 11.5%. it will not be 30 but it is an up year. >> only about 11% when the year >> market was up here it only 16 hedge funds outperformed the s&p. they have a lot to do this year. >> maybe they make it up with some of the deals. talk deals we have got to about this morning. liberty media. we effectively learned friday it is making a bid for the portion of serious xm satellite it does not already own.

that was friday. it looks like they may be using some of their other cash to put together a pit -- a bid. owns about 27% of charter, which may now make a bid for cable. there is also a headline for making a bid for a dutch cable provider. johnl of this is classic moe on. the ultimate dealmaker out there. not necessarily about these three companies. track record.s he acquires businesses and gets the cash flow. --he is able to really move he can take time warner. think about what that could do for charter communications and their subscribers. many have said he is the best ceo in this space. who knows what he can do. >> i am curious why they need to do this, why they need to flow positioncash so much they can help charter by

time warner cable. by kim a not just finance it? madonna, the only thing better than more is all. that song is from the dick tracy movie. that is a madonna restaurants like nobody's business. i will talk about another fallen kin -- kingpin. here we are back in the news. the insider trader trial begins. steinbergw michael found guilty. we had six people that have pled guilty. what does this mean for steve cohen? some people have said this is the kingpin. it was said if they have not gotten him yet, they will not. , when did all the sap and? in the summer of 2008, when the heat was on. many people think this will be the linchpin. he supposedly had a conversation.

>> people were desperate. people new markets were going down. >> what is fascinating is when you look at what bill: was writing today. they look at the deposition steve: gave and he said he did not really know what insider trading was and he was not familiar with the law. >> cbs will have a documentary on that tonight. the fact that steve: could say it was unclear what insider trading is, john, you run a public trading company. you reallyto assume need to understand the letter of the law in a different way than when you had a private business? >> things get more complicated. it gives you a-- better position. there are pros and cons. in general, you just have to be careful about what you say and when you say it. and what is released publicly.

>> whether we are talking about jamie dimon who have to accept accountability for everything that happens in the company or steve cohen, anything that happens inside your company, you have to sign off on that. >> yes. we have more responsibility. no doubt. we hire amazing people that have done this before to look after every step we do. multiple levels of people watching everything we do. >> how do you find the smartest people out there? >> it is hard. you meet a lot of people and try out a lot of people. you have to take your time with hiring. you have to make a decision really quickly and move on. >> does that mean you have a high turnover rate? >> we do not. it is pretty low. that is because we are really picky from the start. a companyt set forever. people are good at different things. sometimes, they move on to other jobs. is to looking to do

at someone's qualities and figure out what they are best at. sometimes, moving them to a different spot within a company. >> tell us about your company. how did you do it? i look at so many people going through an ibm training program, investment bankers, that is the opposite of what you do. >> yes. i started doing everything myself 10 years ago. i am a programmer. i became a photographer because i had to. a customer service rep at my own company because i had to. i did every single job from the beginning because i had to. that is how you build a great company. >> explain what it does. video,ne can sell imagery, and we sell those images and videos commercially released. are like an itunes for artists and people producing images. >> just. like the business version of

itunes for imagery. >> how are you different from other imaging firms out there? lets the firms have been around for a long time. they do similar things. but we started as an all-digital frictionless marketplace. the idea being you can come in and grab whatever images you market, whenever you needed them. it had not been done in this exactly before. we start out with a crowd where therketplace library is organically build wide demand. buyers come in and download whatever they want. the data on what they are downloading is communicated to our contributors who go out and shoot more. >> in other words, you find in the past month, you have gotten 473 requests for pictures of palm trees, so you go to all of needartist and say, we more palm trees. >> it happens automatically. inservators see the data

their account as they sell stuff and they make money and that is a motivating factor for them to go out and shoot more. image? per >> yes about 30% of all of our revenue is paid to our conservators. comes out to a few dollars for a $10. >> you shot a lot of images to begin with to get this started. is most of what you sell ittributed i outsiders now? is a marketplace. >> yes. 40,000 contributors. we get about 30,000 images contributed to us everything will day. we process every single one by can so the marketplace react the way we wanted to. >> he started as a programmer. did you have to become a salesman? >> the product sold itself over the web a bit here and i became a web marketer because i had to. we call that growth hacking. betweencombination

being a product and a marketing person. every time you make a change to the product, it is a marketing effect happening. run experiments. >> the product that you have, people like. we have got to talk about cold. >> you must have whether stock shots in there. they are calling it the polar pig. chicago posses high today will be -10. to eight we will get in new york. has an thing is, this enormous effect on commodities markets. natural gas prices are way up. wheat prices are rising. electricity demand is enormous. electricitying up prices. companies all over the country are having to face higher costs. it would be interesting to see how they integrate that. if you're going anywhere, you

are not going anywhere. 3000 flights are canceled. >> julianna goldman was on the phone with united. guess how long yesterday. she was trying to get home from colorado. 12 hours. it did not take 12 hours to get home. it took 12 hours for united to answer her call. >> how about the guys playing football in green bay? >> pig about the nfl and the effect it had this weekend. we are constantly talking about the home experience and who is going to the ultra stadiums. look at the stadium they build out in san francisco. did you think at any point, i want to get that game? >> not at all. round.grass is >> talk about this weekend. we all watched football all weekend long. it on a tablet and we are tweeting each other. when you were a kid watching these games, did you want to be

there? >> yes. today, we consume media in completely different ways. start to figure out how people are viewing this stuff and what they will use, whether it is instagram and twitter or how they will communicate with each other. a lot of people sitting in the stadiums today are not watching the game half the time. >> half time it trumpeted me walking down lexington avenue on mobile phones. we will have to figure out how we will make money this year. that is what we will talk about when we come back. a lot of commodities are up and it is about to get cold. we will be right back. ♪

>> the senate will vote this afternoon. peoplespired 1.3 million

-- it hurts the economy and hurt them. democrats say it will help the economy if it -- if it passes. cannot get anywhere without politics in washington. here is chuck schumer yesterday. class the republican party says they will not even -- was started round by george bush when unemployment was 5.6%. they will show themselves so far out of the mainstream, it will hurt them in the election. >> john is the ceo and founder -- peter cook is joining us. back from vermont. you had furnace problems when you got home. we are hoping you are warm here at the office. >> 20 below in vermont but no furnace here in bc. -- d.c.. care if theyts have the votes to get this through?

>> politically, they feel like winners both ways. if it passes, they can get credit and if it does not pass, they can blame the republicans. republicanseed five to join them. they only have one. is aeal reason there holdup is republicans feel this could be extended if it is offset with something. rand paul responding to chuck schumer. >> i am not opposed to unemployment insurance. i am opposed to having it without paying for it. it is wrong to borrow money from china were to print up money for it. i am not against having unemployment insurance. >> the question is, how do you pay for it? republicans also talking about politics and focused on obamacare. there will be another vote in the house on obamacare. >> are there any obvious

offsets? we're not talking about huge amount of money. >> $6.5 billion for a three- month extension of the benefits. about 25 billion for a full year extension. there are not a lot of obvious offsets. they picked a a lot of low hanging fruit in the budget deal last month. some people are talking about maybe tying it into the farm bill. subsidies are being done away with. that could help pay for it. it looks likely they will get some sort of deal but they have got to find the money somewhere. have got to tap that in d.c. and finding it is the challenge at this point. >> john, an interesting debate at the conference in philadelphia over the weekend between larry summers and john taylor. they agreed the economy is getting better. sommers said the government needs to do more. john taylor seven problem with the economy is that the government has done too much. do yousinessman, where fall? >> there needs to be a good balance. i would like to see more

encouraging entrepreneurship and engineers. we do not have enough engineers in this country. we are not building the pipeline. starting younger, teaching kids how to code. >> in other words, not teaching them spanish or french, but how to code. theany people think it is most important language out there right now. >> every kid is playing with computers and taking these things apart and writing their own code. we need to formalize that or get more people doing it? >> formalize it. it and get introduced to ,ind your own way through it and i started coding as a kid at 10 or 11. >> why did you start it? it was not in vogue yet. >> i wanted to rebuild donkey kong. i was interested in the mechanics of how it work and i

was fortunate to have people around me who encouraged that an equipment around me that i could play around. then i would go to school and i was learning latin and spanish. it did not make sense. we need to teach kids these languages. to teach kids how to code and you need to find people who can cold -- code. where do you go? >> we have been opening more offices to find them. andof our staff our product tech engineers. 130 right now. we opened an office in berlin. talent.specialized san francisco as well. >> are germans ahead of us? is a lot of them -- innovation happening in berlin. a ton of startups in berlin and germany. >> why did you start your business in new york? not think of the financial

district and that is where you are. >> yes. i went to school here and grew up here. it was natural for me to stay here. we were able to find a lot of diversity. support 20 different languages on our website today. we wanted to start internationalizing, finding to translatepeople the website in new york. >> you would not say you would just do it. >> new jersey. you do not speak jersey. >> i do not right now. useverybody who works for from new jersey has got you on their lists. >> when we come back, we're talking about tech billionaires. we will talk facebook and twitter and a whole lot more. maybe he will be snap chatting during the break.

♪

>> i am adam johnson. liu will be joining us at the top of the hour. it is 26 minutes after the hour and we are checking the markets. you have got to look at the uterus because his is the first monday, the first full week of the year. we have got green on the screen. futures are up three points. we are down for the year. sacrilegious. >> we are three days in. >> it is the first week. , 85% ofthe first week the time, the year is up.

the other 15% are years better midterm election. >> no looking at these numbers, just trying to predict what position, he said you should not have hoped. hope is a four letter word. >> indeed but one company not about hope but about the real has been on ack tear. a lot of people talk about facebook and twitter, but look at this thing. 200 28% year to date. digital images. you could download them. it is inexpensive. we are joined by the founder and ceo. it is awesome you created this company out of scratch because nobody else was doing it. you have got to run a company and now you are a public company. how much time do you spend worried about stock prices and analyst and wall street and all this stuff our viewers typically are focused on?

>> i spend 20% of my time on investor conferences and dealing with our quarterly calls, certain investors, and it actually has been having a positive effect on how we run the business and how things are going. >> because you are more accountable? >> we are more accountable. andave had investors before i am accountable myself also. it has helped us formulae's and communicate. formulate and communicate our message to our employees and to the world what we're doing and what we stand for. we're are always trying to push the limits of where we are and thinking about shutter stock as a platform where we are a marketplace and a technology company. could we sell other digital things? that is what led to footage. we sold stock video today. one of the largest stock market

places and some of the largest producers. >> it is almost a different kind of tech how pinnie from a facebook or twitter. you are responding to customer demand and not creating something customers have not had before and teaching ms is -- this is what they want. >> we are selling a business product to businesses. you do not come to shutter stock to buy images and put them on your home screen and mobile device. you are buying images from us to sell your product or service. we have built the business from the beginning. >> give an example. one of your best customers comes images over and over. how are they using them? x we have multiple clients. they are small and work by themselves. they may be in their own house or a small and shared cubicle. they may be doing menus for the local restaurant for interior

design mocking up for the local coffee shop or small businesses starting to it all the way up to the largest publishers. us world had -- buying from and having subaccounts. and our servicing some of the biggest brands in the world. >> are images more in demand now? when you think about what consumers want, it is amazing. you look from 2000 until today, newspapers have half the staff they used to. post sold at a garage sale price. is it because images are the greatest value today echo >> we need images to sell things. people are using more and more images to sell things. before i started this company, it was not likely you would use 10 different images and try out a a campaign in 10 different ways.

if you're trying to reach and sell them something, you may try 10 different images and segue your list to 10,000 people. >> you're customizing, in other words. >> your testing. >> will we get. this year? i want to talk to less and less people on facebook because if i do and not get one more cute picture of a cute kid, i am desensitized to it. >> you need images to sell things. >> not enough beer for women's pictures to look at. to sellan use text things and people have done that. i learned first hand before i started shutter stock that if you include an image in your marketing material, it works better. or powerful. >> have you failed at anything with shutter stock? >> we fail all the time. we are a testing culture. and try things appeared

we are not always right. we are not always predicting what will be right. >> what is something you tried that did not work? >> we are testing a few different homepages. we have tested it in colors. >> i do not know what that is. tothe purchase button next an image. >> the color of it yet let me tell you something. pair of shoes, it does not matter what color the button is. >> you do not know how much testing they're doing. they are trying to figure out what drives more sales and trying to get you to come back quicker. >> good to have your perspective. that is the founder of shutter stock. >> let's really talk tech. the tech gabbert -- gadget trade show is coming up here he will talk about that when we come back here. ♪

>> breaking news on pandora. it is announcing its december listener hour. listener hours up 13% in the month of december for a total of one point i've 8 billion. its market share is went up a little bit. one that's only listeners in cars can hear. ,ompanies like bp and paco bell state farm, all of them signing and 32nd spots. backfield. technology, technology.

jeff and time to kick off the consumer electronics show in las vegas. $1.06 billion. that is what is predicted by the consumer electronics association. smaller.ut one percent estimated at 1.0 7 trillion. what is behind the slon of spending. an estimated 200 97. john, you are here with us on set. you are not out in las vegas. it is all thatd technology, why do you need to go. it is a media opportunity. what do you think?

class i do not typically go. caught up lifecycle seem to get shorter and shorter. this does not seem to make that much sense anymore. >> sam did a look ahead at what to expect. i wear a fit bit. what do you feel about this revolution? >> if you get a phone on a wristwatch and do not have to calls you what phone do not want to answer, that would be great. walking around with google glass does not seem to be to tractable. of my house with

them. >> anything new -- a size 11 shoe -- car phone. >> the first, had a car phone, i felt like the man. >> do trade shows in general atter anymore? our photographers have different trade shows. when it comes to camera cameras andas phones get more danced, we are starting to see people shifting from bringing out to shooting right at -- out of their mobile device. rise image from our

phone, those are the ones we will sell. >> when i see 3-d printers, i think they are amazing, is it the real future? >> 3-d printing will change a lot. it is more than just totally cool. you will be able to hold less inventory. we can print metal, different materials with 3-d printers. class when you look at the number of people using these it is not the worst that

. everyone on earth is using this. >> in other words, buying twitter at 304 times cash flow, not a bad that. >> i do not know if i would be buying the stock right now. it is complicated. there are people willing to take this bet. times change so quickly. we look at instagram now. bought for $1 billion. it does not seem like that -- expensive. >> you think snap chat should have sold itself? i think snap chat is about s exting. >> it is great they're not selling. great they are not -- they turned down a really big offer .o try to go out >> i am the next greatest internet company. >> will say that about amazon

also and look at where we are. there is always one that pops up. chat'sot know what snap business model will be in a year. >> we will be back with more on that in just a few. >> we will be coming back talking about pot banking. ♪

>> today, we will have a guest discussing his new book, "unbalanced." it is a dive into codependency between america and china. he was the guy who used to run morgan stanley in asia. forward to his joining us. >> if you think about it, in the

last lot for years, stephen on one side and jim on the other. steve and you have to trust the policymakers. she is really turning the page. i want to hear what you will say. >> he is very close to trish regan, joining us now to talk about what is happening with pot in colorado. it is a very big deal. it is now legal in colorado for recreational purposes. it had been for medicinal purposes and prices have doubled. >> it is amazing. the first of january, this new law took effect, which allowed people to buy marijuana for recreational purposes. you did not need to have a doctor prescription. you can go up and say, i will buy some and you can smoke it

there in the privacy of your own home. what has been amazing is what is done to prices. >> the law of supply and demand. demand will go up. >> demand has gone up here you have seen lines just stretching out. as a consequence, we have seen prices double. before to run about $200 january 1 for a medicinal ounce of marijuana and it is now going or $400 an ounce. for recreational use. that includes point percent tax. to your point, supply and demand. i would argue over time, as this asomes more prevalent and you remove the criminal element, and in other words, it is less risky to grow marijuana and sell marijuana, then how can you a significant price?

isn't this a commodity like any other? >> the laws on supply? who supplies the pot? where you would see the market reaction. farmers would plant more corn if there is not enough corn. can i go plant marijuana to take it vantage of this? you could, but it is challenging because colorado has put in a whole host of laws that make it difficult for us if we wanted to suddenly open a pot growing shop. >> it will hurt other states and put pressure on them. if you are planning a ski trip and the question is, will i go to lake tahoe or park city, i do not know. i'm not saying everybody. there are people out there saying, i want to smoke some dubious. -- doobies. >> you have got a point. pressure on more

and more states. 20 states all allowed medicinal marijuana. cuomo saying he will take new york. >> here is the thing. you wrote the book. the almost legal marijuana industry. you wrote it. >> thank you for the plug. do you have the cover of the the cover, you have show it. there it is. will not touch this thing and do not want to be associated. it is a cash business. tax be collected? >> this is a good point. it is a cash business. it is really interesting to see. these people have to operate in cash. they have been kicked out of bank account after bank account. the minute the bank finds out what you are doing, you are done

and you get kicked out. they go through elaborate measures to hide what they are doing. that includes what they do to protect the money. it really cannot be dirty money. you go in and buy your marijuana and they take your cash and the cash immediately gets moved. these shots really smell. my close would wreak when i walked out of them. in a sealed an airtight room, so that it would not smell like marijuana. to seed you like marijuana become illegal in the state of new york? >> we should make it legal and tax it. it should be taxed federally. >> is that because we can put the money -- or because we are spending too much money trying

it is ant at bay? >> expensive thing to keep it illegal. >> it is. it is estimated to be a $10 billion industry overall. >> let's tax it. buy it andant to smoke it. >> colorado will see $60 million in tax revenue this year. >> joint ventures. this is a story you want to follow. and sell the money at the same time. we will come back. speaking of industries you want to follow, we will talk about the business of the nfl. interesting stories about ticket travis is in the league and also very cold weather. we will have that for you. we are back in two. ♪

>> we are back with the ceo of shutter stock. a great year for you.

you cannot tell us how great because you have not reported earnings yet. whatyou look back on 2013, stood out for you with shutter stock the most? what will you try to leverage into 2014? >> i had time to put together my thoughts and there was a lot of product improvement. products. some we added 10 new languages to the site. we surpassed $150 million. making them are actually a good living all around the world. to build.ntinue we have a few big goals and we are hiring. expansion continues to be a big deal to us. marketplace we

grew. >> not just still images but moving images. >> is there a tech company you are a fan of? >> i am a big fan of uber. an amazing marketplace which has changed a lot of peoples lives. it only started a few years ago. you look at this is like that that can pop out of nowhere. it will even out as we have talked about. will even out when drivers can make $250 an hour when the weather is bad. there will be more of them. >> what a treat having you here. >> thank you so much. you, anchored with the three of us today. ceong up, the president and of sports entertainment. adam johnson i -- and i are signing off.

thank you for watching. ♪

>> 30 minutes to the opening bell. this is "in the loop with betty liu." the countdown begins right now. that, you are "in the loop." congress back in session after two weeks off. a second year with a hefty to do list after pre-election battles. t-mobile buying spectrum from verizon wireless for $2.4 billion, giving t-mobile some low band frequencies and verizon a chance to ease congestion in cities like new york. the -- sword how -- past

bitcoin soars past of the $1000 mark again after zynga says it will accept the currency for some games. the race to the super bowl is on. fans watching three of the games of our wild card weekend were almost left in the dark as teams scrambled to sell enough tickets blackouts in local markets. nearly fourl's decade old black at role. joining me now is ceo of lhb sports entertainment and media. nfl, nba, nflthe the. also, peter cook has the regulatory side. lee, whoy -- edmund has been following this all along. lee, this is a growing problem. threats of blackouts.

some companies have to get in and by the stick its up -- buy masse.ickets up en tothere have only been blackouts, but there has been threats. it is better to have the tickets purchased and have the games on tv versus having them blacked out in the home markets. >> you make more from television viewer. viewers are worth more to advertising than people going to the game live. for the franchises them self, that is something they should consider in terms of adjustments to the blackout role. >> i understand what you are saying, we have only had two blackouts during the season. it is the threat that continues to plague the team's and the nfl. it is notger picture, just the nfl. at the margin as a ticket buyer, do you want to go to the game or watch it at home? >> most want to be at home. >> as media executives, we have

done a great job of putting all the games on in hd. the issue going forward, at the margins, do take it buyers what the -- to ticket buyers want the atmosphere at the game. every market is trying to increase wi-fi, food, camera angles, things that make the game experience more enticing than watching it at home. >> the fcc and congress has been wrestling with this. what would it do if they got rid of the blackout rule. >> a lot of politicians would be happy. complaint on friday, sherrod brown from ohio, fear that the cincinnati bengals game would aired locally. he complained. we have richard blumenthal and in who have

introduced legislation to do away with the role. they say it is unfair to viewers , especially in places with publicly financed stadiums. they say this is 40-year-old policy. before, teams would make ticket revenue money. now they make more money off the tv deals. washington is moving in that direction. the fcc is moving, the nfl has a lot of power and is fighting this. i would not bet against the nfl. >> is this unfair? >> i do not think so. there have been very few blackouts. fans are filling up the stadiums. you have last-minute deadlines pushing them to purchase tickets. you get everybody at home watching the game. they used to be that years ago there were dozens of these, only two or so this year. fans into thering stadium. and the sale does not have a problem with the super bowl. those ticket prices are going

sky high. >> as high as ever. ticket prices for football games in general are much higher, which subverts the point of a blackout rule. 40 years ago, it was cheaper to go to a game. you might want to encourage people to support your franchise. nowadays, it is a different experience with a different kind of prospect to spend all that money. the super bowl is a thing people like to watch at home with their friends coming over. >> it is the hottest ticket in town, the perfect storm, barring a storm. the super bowl in the nation's largest market plus hundreds of firms and corporate headquarters all eager to see the game in person. weather.he cold not only are fans paying top dollar. again, we are seeing record ad rates. million for a$4

32nd spot, about $30,000 more. it is only going to take -- it is like $4 million for a 32nd spot, about 30,000 dollars more. up.s going to tick >> is it going to end? -- very few other markets get people to sit in front of their tv for three hours on end, the nfl does. >> are you going to watch tim tebow? >> they are going to get ratings, they are trying to launch a new network. very few analysts get their own trust conference, tivo did. you want tim tebow. >> how do you make sure he lives up to the height? a tv careerto get or go back on the field, he gets

the exposure and it is valuable for espn. >> thank you so much. lee berke, president and ceo of lhb sports entertainment and media. also, ed lee and peter cook. moving and shaking. new york governor andrew cuomo planing to revive a 1980 medical marijuana law that would allow some hospitals to make use of the drug for patients with cancer and other illnesses. similar bills have died in the public and controlled senate. andrew cuomo plans to use executive authority to bypass the legislature. more details will come in his state of the state address later this week. join 20 states, from california to massachusetts, that would allow medical marijuana for youth. until now, andrew cuomo has

opposed medical marijuana. his decision falls short of legalizing marijuana entirely, as we saw with colorado and washington. time in lasech vegas. talking to a venture capitalist about what he is eyeing on the road to the consumer electronics show. tops $1000, some people are seeing real profits in the currency. wall street is now taking notice. stay "in the loop." ♪ loop with betty liu will be right back. ♪

>> you are watching "in the loop."

live on bloomberg television and streaming on bloomberg.com. everybody is seeing a boom in health care offerings at ces, consumer electronics show, in las vegas. 10% of exhibitors will boast devices and apps. from fitness monitors to andialty items for teens seniors. aining me is the ceo of company that invests in young tech companies. and a lot of people are investing in health care i.t., that is the next boom. where exactly is that? i.t. is acare tremendous opportunity. it is a great time to be investing. you mentioned in the lead and some of the consumer devices, bits, homeit monitoring devices.

that is the fun stuff. there is a lot of value built in that. less glamorous stuff is where we tend to focus. thebackground of helping giant health care companies, the insurers, and the hospitals deal with the massive changes that have been brought on by health care reform. those companies' business models have changed so much. they are all invading each other's spaces. insurance companies trying to deliver care and hospitals trying to manage population health. technology -- i.t. is the way they do that, it is a great opportunity. ceos,have had quite a few on and say there is a huge growth area in bringing medical records online, for instance. that is a growth area. what is the sweet spot for you? >> the sweet spot for us is helping the date companies deal companies deal

with the change. health insurance purchasing exchanges have been in the news. it is really hard for those big companies to get ready to sell ne, two individuals rather to employers. that is a big sweet spot. a company is one of our offerings in that space and serves about 50 million consumers. also, some of the most mundane things. like making an appointment to go to the doctor or to talk to a specialist on the phone, those are really hard in health care. there's a company called zoc doc for making of online. we have one called myhealthdirec t that helps hospitals and insurers do their part in the scheduling. we're hoping these big organizations -- helping these big organizations is important. been hearing this

revolution and health care for years. ever since the first dotcom boom, you kept hearing about how companies were going to transform health care. it has not happened. why is it different this time? couple reasons. the biggest is the affordable care act, that through all the ships in the air and they are going to fall down in different places. learn tos have to dance differently. consumers have to behave differently. the cost of health care has been insuredturfed to people, they are paying more deductibles. people are being pushed to take more responsibility for their health. the third is that the cost to the system is finally coming into focus. employers cannot keep paying much higher than the world right for healthd rate

care for employees. pushing the system to coordinate care and people to be healthier. you for joining us. david jones of chrysalis ventures. fly to ces trying to in las vegas, you may have had issues. today's big number, nine thousand. how many flights were canceled across the u.s. this weekend. was hard hit,re leaving 1500 flight cancellations as snow stranded travelers. it is only going to get colder. coming up, a boost for bitcoin following news out of china. why shares are going through the roof. ♪

>> the virtual currency bitcoin has been around for more than five years. it is drawing attention on wall street. brokers, analysts, and hedge funds are trying to get their foot in the door as the currency hits the $1000 mark again. for more, carter joins us from washington. the big deal. now that wall street is attracted to bitcoin. what does that mean yeah go -- what does that mean? >> a lot is in trick. you have a currency that does not really exist in any meaningful sense that we know currencies exist. it is not like gold. when somebody says there is a virtual currency called bitcoin, you say what is this/ >> that is why we had 12 days of bitcoin. >> absolutely, a public service. >> wall street is looking at

bitcoin. when we say wall street, what do we mean? big firms? wall street in the sense of the professionals who know how markets work and particularly 'ho know how the markets volatile commodities work. i did not find evidence that citi for goldman are actually buying bitcoin. report,america did a they are looking at it. they are intrigued. >> only a matter of time before we see what? >> you will start to see some startup companies that resemble traditional brokerages and exchanges, just that they do bitcoin. sell, switch money back and forth quickly between

accounts. maybe some derivatives and some putss and options. -- some and options. the kind of things that other bitcoin companies will need to manage risk. in washington, i imagine regulators have been looking at this and might step up when we start to see more official exchanges and whatnot surrounding bitcoin. >> the exchanges are tip towing around regulators. they feel like they got a good hearing in march from the treasury department and the senate in november. the push is on by bitcoin exchanges to get properly licensed. the venture capitalist who back them have made clear that the want to play by the rules are going to thrive and get real money. their besting to do to make regulators happy before there is a problem. >> thank you so much, carter from bloomberg news in

washington. a few minutes away from the opening bell. we have the top 10 trades you do not want to miss. keep it here on "in the loop." ♪

>> welcome back, you are lululemon." 26 minutes past the hour, bloomberg is "on the markets." julie hyman has the latest on futures. work afterre back to a lot of people were off last week. an uptick in volume. setting up for a higher open. to gain for the s&p 500 after a rocky first few days of the year. looking forward to ism services report, a measure of the services industry in the u.s.. as well as the factory reports to give us more material when it comes to trading. right now, setting up positively. >> thank you. "on the markets" again in 30

minutes. let's count down to the open with the top 10, the only traits you need to know about. we are back at work. julie stays with us. number 10, ge. it will buy some assets from thermo fisher scientific for $1.1 billion to expand its life sciences unit. ge expects the deal to close in the first half of the year pending regulatory approval. >> teva pharmaceuticals likely to name a board member. in former ceo was ousted october after a conflict with the board. >> ebay shares falling after downgraded them to equal weight. slashing its price target by a dollar. analysts favor things like amazon over ebay. agreeing to acquire

spectrum from verizon for about $2.4 billion in cash as part of an airwaves swap that would give both companies more network capacity. t-mobile expects the deal to close in the middle of the year. >> intel set to debut some of its mobile technology and wearable technology at the consumer electronics show today according to a person with knowledge of the plan. the new products, as intel looks to stay relevant amid tc decline. sachsst solar, goldman downgrading them due to a lack of earnings. a shift to rooftop solar will hurt them. goldman lowering the price target to $45 from $62. to underweight from equal weight at morgan stanley with a price target of 33 dollars a steal. it rallied 50% over the past

month, organ stanley says twitter trade at a premium to its peers and the bank would refer to own twitter and google. >> men's wearhouse and joseph a. bank, the take of their dance continues. men's wearhouse has made the latest move, mounting a hostile taking itigher price directly to shareholders. it said it intends to nominate those current directors to joseph a. bank's board. jpmorgan facing a $2 billion penalty in a case tied to bernie made off. the settlement could be announced as early as tomorrow according to "the new york times." jpmorgan, madoff's primary bank, is accused of ignoring signs of his ponzi scheme. >> sirius. liberty media offered to buy the

3%pany, valuing the company above its closing price. giving liberty access to a new source of capital as it pursues a merger with time warner cable, expected imminently. let's turn to the call. earlier on "surveillance," i talked with dan alpert of of westwardital -- capital. he said now is the time to get into bonds. >> bonds are oversold. it is not just gross who is a piñata, it is bonds at this point. again inflation and economic growth and statistics, almost any measure, bonds are oversold. eventually, we will catch up. it,here he is calling saying the spike in interest that has2013 -- created this oversold position and there is now a time and a chance to pick at bonds. been, alix you have

covering this very closely. it is an interesting position given that many people say you should stay overweight equities and continue to underweight bonds. >> that is my first reaction. it is a lonely position right now for dan. person after person talks about that we are going to continue to see real drive. maybe not by that much, maybe they will be range bound, but they will continue to go out as economic data comes in and improves. ast because you are seeing little bit of a correction and bond prices as he is calling for it does not mean people are not going to be buying equities. it can happen at the same time. some do not agree that bonds are where you might need to start putting some of your money. of cumberland advisors coming out last week saying that municipal -- tax-free municipal

bonds are where you should put money. they remain cheap. do not own treasuries, they are not cheap. the current bond market is anticipating either a rise or inflation. or, shutting the barn market for the stock market. those might be mistakes. looking for the municipal bond market to provide value. >> interesting the investor psychology. saw high redemptions in 2013 because of the fear of the bond markets. that money is not necessarily going into stocks. dan's take was cash is not bad. cash.n we will be back with more. coming up, u.s. trade representative mike joins us to talk about the hubbub surrounding presidential fast-track authority when it comes to trade deals. why the republicans are against

it. liberty global and time warner cable, more about the move this morning. sirius shares soaring. stay "in the loop." ♪

>> here is a look at the top tech stories. samsung exploring a move towards the auto industry. the south korean company may produce automated navigation and systems as sales of hanson slow. samsung makes one out of every three of the worlds smartphones. t-mobile buying spectrum from verizon for 2.4 billion dollars in cash. part of an airwaves swap that would give both companies more network capacity in areas they need it. the deal would provide t-mobile, fourth largest u.s. phone carrier, with a number of needed

frequencies. htc, taiwanese company, missing estimates for the fourth straight quarter. the largest smartphone maker in taiwan has seen declines as it struggles to meet competition from chinese brands. shares fell to their lowest level since october. catch the latest every weekday at 1:00 and 6:00 p.m. eastern on "bloomberg west." global -- liberty liberty media announced an offer to acquire the remaining shares of satellite radio carrier sirius xm, a step closer to an acquisition of time warner cable. putting theal is finishing touches on a deal with dutch broadband provider ziggo. john malone was pretty busy celebrating a possible acquisitions. alex broke that story for us and joins us now. tell us how this piece of the puzzle kicks -- fits in? the real brownie is time warner cable. >> it is a multistep process.

take us back a step. liberty media owns 27% of charter communications. oferty media also once 52% sirius satellite radio. the offer on friday is trying to buy all of sirius satellite radio. some analysts thought they may end up selling their stake in sirius to get money in order to fund a time warner cable bid. all ofng to acquire sirius, they are signaling to investors that we believe in sirius, we believe in their positive free cash flow story. that will give liberty more money to potentially find a deal for time warner cable. also, liberty thinks they can leverage up sirius' assets to borrow more money. >> wide and others figure this out? -- why didn't others figure this out? >> the issue is what is

liberty's future. the next step is that charter to buy timebid warner cable. i will be a $62 billion bid. most of that will be generated off of charter's balance sheet. some of that money will detect in by libertyked media. the question is how much. liberty has said they want to have the same percentage and the new time warner cable, 27%, as they do with the current charter company. they will have to kick in about $3 million. that is at the 135 dollar price target we hear charter is going to offer. >> that is coming at any moment. >> it could come this week. that said, the offer price may creep up. if it does, liberty media's going to have to take in more in more money.

>> what about the sirius shareholders? >> sirius has a special committee evaluating the bid. sirius shareholders are going to have to weigh in. we have heard from ralph nader who says this is too low. has said they are willing to negotiate on price. that may creep up, that is why sirius was trading higher than the offer price, three dollars, is -- $3.67 a share. >> we will be back in two minutes "in the loop." ♪

>> we have some breaking news. ireland said to be hiring banks for the first of bond sales since its bailout. joining me now is chief global strategist at j.p. morgan funds from boston. happy new year and great to have you back on "in the loop."

i have got to ask you this. this country is close to your heart. you say it is part of the recovery story in 2014 for europe. >> ireland is a poster child of an economy that went through tough times but took tough choices and is now in recovery. there is, around peripheral europe, and italy and spain you are seeing better numbers and purchasing industries. you are still having problems in france, but europe is on the road to recovery. europe is actually doing lousy, but it has room to grow. the unemployment rate in europe is 12%. if you can get that down to 7% or 6%, that means a lot of earnings growth and opportunities in european equities. >> when do we had that, as mohamed el-erian says, the escape velocity in europe? the physicshink work. an escape velocity, the

gravitational force is our strongest before you start going. that is not the case with recessions. went to get the unemployment down, it becomes -- it begins to come down slowly and it is a virtue of cycle. it powers itself. people say this about the u.s. economy. the u.s. economy does not need escape velocity. once it gets going it will move back towards equilibrium. >> that is why uses stay -- that is why you say we should still be overweight equities in 2014. you dispute what we had a guest on "surveillance" say. dan alpert believes there is a bottom in the bond markets. you say underweight bonds. >> the valuation gap between bonds and stocks, frankly, 2.5 years ago was yawning. that has mostly close.

over the course of this year, as the federal reserve goes from buying $1 trillion worth of bonds 20. as -- to zero. as other investors move money from fixed income to equities, we will go up another 50 to 100 basis points. we are not close to a delivery and yet in the bond market. >> what is keeping you up at night? >> apart from my teenage kids. worries.- two one is that people wait too long until they feel comfortable at -- about everything before investing. i worry about asia. the nationalist rhetoric coming out of countries like japan and china. they have got to cool it, we need him trading together to keep the global economy going. i worry about rhetoric out of washington with regard to the debt ceiling. we need to see an increase in the debt ceiling as quickly as

possible so that it does not come back to worry the markets. much, great to see you. david kelly at j.p. morgan funds. continuing our global outlook segment with congress back in theion after two weeks off, white house and big business lobbyists pressuring lawmakers fastve president obama track trade authority. special permission to promote trade rules and u.s. exports without requiring a congressional progress. the president wants to double u.s. exports from 2009 levels. congress is not giving in without a fight, particularly republicans. joining me is michael froman, u.s. trade representative kirk. also with us is mike mckee. ambassador, let me talk to you about this. say this is undemocratic, unions say this. how do we know the president is not going to abuse his authority? how do we know this is going to create jobs? trade authority is the

mechanism by which congress has worked with every president give the0 four to president the marching orders about what to negotiate in trade agreements. to lay out a process by which the president needs to work with congress. and the process by which congress approves or disapproves a trade agreement. expression of congress' will on trade negotiations. anything a negotiation has to be submitted to congress for approval. we have been working with congress for the last several years in these negotiations. they are very much well aware of what it is we are negotiated. we have had over 1100 meetings with congress on the transpacific partnership and we look forward to working with congress on trade promotion authority. >> you really look forward to it. sell.s a tough we have been through with other presidents who get fast-track authority. it is easy to show the one worker becausel

of trade and it is hard to show the benefits of everybody. how do you make that case to a congressman does not seem interested in economics? congress that does not seem interested in economics? what we are doing builds on the past and goes beyond in terms of opening markets, leveling the playing field, rates and labor and environmental standards. american workers will be able to compete on a level playing field and sell products abroad. that is what we are trying to do through the transpacific partnership in the transatlantic trade and investment partnership. open markets and raising global standards so it is our standards around the world that we are competing on the basis of. >> how critical is this to the goal by the president to double exports? we canne of the steps take to open markets that are currently closed to us at expanding words.

the u.s. has a relatively open economy, we take a lot of a part -- we take a lot of imports from the rest of the world. our goal is to remove tariff and nontariff barriers to exports so we can drive exports and increase jobs and prosperity for the middle class. these trade agreements, when they are fully negotiated and implemented, and enforced. underscoring and forcing, -- un derscoring enforcing, it can in short we do so in a way that promotes workers. >> given that this is an election year, when can you get to a vote on fast track. presuming you get it, when can you conclude a treaty? thee are working on transpacific partnership agreement. we're in the final stages of that. we had a very productive set of meetings over the second half of last year to identify landing zones there. on the transatlantic trade investment partnership, we are well underway.

an earlier stage but we are well underway. with regards to trade promotion authority, it is a congressional prerogative. we will work to get a trade promotion authority bill with as broad support as possible. >> how do you convince unions like the teamsters that something like this is going to create jobs? >> increasing exports and open markets drives manufacturing in the u.s. ttiphe end of tpp and negotiations, we will have trade with more than 65% of the world. combined inherent strength in the u.s. economy and market, a strong role of law, abundant sources of clean and affordable energy. it makes the u.s. the production platform of choice. >> but all they are thinking about is that jobs get outsourced. >> the point i would like to

make -- take all these factors together, it makes companies want to invest more in the u.s., including in manufacturing. we are already seeing that. industry after industry, companies from around the world. country from the u.s. bringing production back and companies from around the world deciding that between trade agreements and strength of the u.s. economy, this is where they want to be based. they want to produce in the u.s. and use the u.s. as their export file form to the rest of the world. these trade agreements are a key part of that. these trade agreements will create jobs and promote growth. >> michael froman, thank you for joining us. also to michael mckee. that does it for today on "in the loop." tomorrow, domino's ceo patrick doyle will be "in the loop" for an exclusive interview about how the pizza giant is using technology even more to drive sales. tomorrow at 9:00 a.m. eastern time. we are "on the markets" next. ♪

>> it is approaching 56 minutes past the hour, bloomberg is "on the markets." diane julie hyman. 30 minutes into the trading day. we have a mixed picture, very little change. i could change in a few minutes when we get economic data on the services industries in the u.s.

from the institute for supply management. looking to that for more direction. time for futures in focus. after its biggest annual plunge since 1981, gold trading at this highest level in three weeks. h.ld analysts are bullis joining me now is greg, he used to trade gold futures on the comex. people are saying we're going to see a correction, optimism after the decline. what are the signals you are watching? forecast, itook at is important to understand what the timeframe is. a lot of forecasts are short-term. that is what you are seeing in the charts. in the last two weeks, the area. -- very oversold market, you made new lows and there was no follow-through. the rubber band

got stretched and now we are back to the upside. in the long term, most investors believe the trend is still lower the next couple months. >> what about shorts in gold. fromw shorts tick up october through the end of december. how does that play out if we are talking short-term or long-term? >> the commitment to traders report we focused on for the futures market is in the same position as back in july when and rally back up to 1300. inder are looking at that the short-term or medium term that we are overstretched. we look at positioning into gold exchange traded products, etf's. they seem to be stabilizing, somewhat bullish for the medium-term. this week.ut

economic data coming out in a few minutes. what are gold traders looking at? >> excellency minutes on wednesday. that is going to help people parse out how the taper is going to play out. ecb andndbh -- the bank of england interest rates thursday on nonfarm payrolls friday. at 1265 as the big level to the upside, that was the high on december 10. on the downside, 11 81, the low on december 31. report this week is probably most important to the stock market. is that true for the gold market? >> that also affects the dollar, the dollar had a mixed week last week. it was weak against the euro but strong against the yen. the dollar index, the trade weighted based dollar is starting to look election.

-- starting to look bullish. not great for gold. asgood to talk to you always. "on the markets" again in 30 minutes. "market makers" is next. ♪ .. ♪

from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. shot in the smart phone battle with at&t, making a two million that on -- point $5 billion bet on upgrading the airwaves. billion bet on upgrading the airwaves. >> prices have doubled in colorado after the state pecan tostate became the first legalize recreational marijuana. >> i am stephanie ruhle. in new york.ng for you, ball me. -- for you, ball me -- balmy. this